tax policy

While I have long thought Barack Obama to be very far left, I was struck by this story, as recounted by the New York Post:

"It's not that I want to punish your success," Obama told him. "I want to make sure that everybody who is behind you, that they've got a chance for success, too.

Then, Obama explained his trickle-up theory of economics.

"My attitude is that if the economy's good for folks from the bottom up, it's gonna be good for everybody. I think when you spread the wealth around, it's good for everybody."

Combine that with Obama's unprecedented breathtaking new welfare proposals dressed up as tax cuts, which eviscerate the 1996 Welfare Reforms by creating cash transfers without work or training requirements.

My suspicious political lizard brain sees a pattern. Barack Obama thinks he has this election in the bag. So after months of running to the center on issues, such as it was, he is starting to talk about an agenda that is closer to his ideological heart. On November 5th, he can claim that he won on redistribution, pointing to this tax plan, these quotes, and some more speeches that he will give in the next three weeks.

And then he will have the political excuse to push it through Congress.

[Promoted - Jon Henke]

Fiscal conservatives have reason to be alarmed leading up to November. The current political climate is such that populist Democrats are poised to make significant gains on Capitol Hill, while Republicans are frantically moving to the center in order to stay in office. This likely means an increase in your tax burden, and a perpetually expanding federal budget (which has nearly doubled since 1980).

It goes without saying that those in favor of pro-growth public policy, with low taxes and sensible government spending, will be furious if a merry band of tax hikers is sworn in to Congress and state legislatures nationwide next year. What is less certain is whether these candidates are aware of America’s preference for policymakers keen on allowing citizens to spend their own money, rather than insisting the government spend it for them.

To that end, the National Taxpayers Union has launched its “I Don’t Vote for Tax Hikers” campaign to mobilize the grassroots movement and present a formal rejection of the tax-and-spend policies that threaten to further inundate government at all levels. The logic behind it is quite simple: Politicians respond to the demands of voters. This campaign is an incredibly important way to remind elected officials that there is a coordinated taxpayer lobby – and we vote, too.

This past week, 15,677 signatures were filed with the North Dakota Secretary of State's office for the Income Tax Cut Inititiave. Sponsored by the North Dakota chapter of Americans for Prosperity, the initiative, if certified for the November ballot, would slash North Dakota's state corporate income tax rates by 15 percent and the individual income tax rates by 50 percent starting in 2009.

Apparently, North Dakota exepcts a budget surplus of anywhere between $700 million to $1 billion next year, so supporters of the initiative are looking for both tax relief and restrained government spending during these "sunny days." Smart!

But the AARP is opposing the measure because "it would hamper state and local governments’ and school boards’ ability to respond to emergencies or shifting priorities in the future." The North Dakota Farm Bureau is also opposing the measure citing "worries that it would place the burden of spending on increased property taxes." Now maybe North Dakota should start a government "rainy day fund" that is concomitant with this tax cut, but it's amazing what poor excuses are made to not cut taxes. (But I invite any North Dakotans to explain why voting Yes on this inititiave would be a bad idea.)

This will be the second income tax related ballot initiative this year, joining the Massachusetts Income Tax Repeal. While well intentioned, the Massachusetts initiative is a bit extreme as it would completely get rid of the 5.3% tax on wages.

With so much focus on the national economy during this presidential election cycle, there has been a lot of emphasis on the candidates' tax and economic growth policies. Folks in the broader national conservative movement need to realize that not only do local and state taxes have just as much of an effect on the economy as national taxes do; state and local tax, budget, government transparency, and other localized bread and butter issues can help build our farm team, as previously discussed.

The fiscal evolution of Barack Obama, in three quotes.

• "There are some things we have to do at home to get our house in order. No. 1 is we shouldn't be running up budget deficits." - Barack Obama - May, 2006
• "Obama says he's not going to sacrifice his domestic priorities for deficit reduction. Universal health care, renewable energy, and all he rest won't be sacrificed on the altar of PAYGO." - Ezra Klein, reporting on Barack Obama's Yearly Kos Presidential Forum - August, 2007
• "Our estimate for the ten-year revenue change compared with current law from Senator Obama’s plan is ... a $2.7 trillion revenue loss. ... With interest costs, Obama would add $3.3 trillion to the national debt..." - TaxVox, the Tax Policy Center Blog (Brookings/Urban), on the fiscal impact of Barack Obama's tax plan - June 2008